How Interest Rate Cuts Affect Bitcoin? Crypto Market on Hold

Fed's Interest Rate Cut Expectations Strengthen

Low inflation data from the U.S. has increased expectations for interest rate cuts. A 25 basis point cut is expected in the upcoming meeting. Investors are closely monitoring messages from Fed Chairman Jerome Powell. This situation is shaping predictions regarding the impact on cryptocurrencies.

Inflation Figures Boosted Bitcoin

The September inflation figures came in with a Consumer Price Index (CPI) increase of 3%, creating positive effects in the markets. This development caused Bitcoin's value to increase by over 3%, and the leading cryptocurrency reached up to $115,000. Currently, it continues to stay above $110,000.

Expectation of Change in Fed's Policy

The likelihood of the Fed opting for an interest rate cut is projected to be 97.8%. Additionally, a similar cut expectation has risen to 94.9% for another meeting scheduled at the end of this month. According to analysts, this situation could create a positive impact in the crypto market.

Institutional Investors Show Renewed Interest

Analyst Lacie Zhang from Bitget Wallet indicated that Bitcoin's recovery signifies a resurgence of interest from institutional investors. Powell's emphasis on increasing liquidity in a controlled manner is also boosting confidence in both the cryptocurrency and stock markets.

In summary, expectations for interest rate cuts from the U.S. Federal Reserve may impact the value of Bitcoin and other cryptocurrencies. Investors should closely monitor developments and shape their strategies accordingly.